Operation Management

Operation Management CASE STUDY (20 Marks) Nissan was a Japanese multinational automobile manufacturer headquartered in Nishi - ku, Yokohama, Japan. Nissan sold its cars under the Nissan, Infiniti, and Datsun brands. The Datsun Go had been designed and engineered specifically for sale in markets such as Russia, South Africa and India. The model was on sale in India since 2013 and in South Africa since The Nissan Datsun GO car received a zero- star safety rating for adult occupant protection in a crash test conducted by Global New Car Assessment Program (NCAP) in 2014.

The vehicle structure collapsed and was rated as “unstable” during the test, and raised concerns that this could lead to a high probability of life-threatening injuries for the occupant. Global NCAP publicly called on Nissan in 2014 to withdraw the model from the Indian market. Nissan initially defended the integrity of the vehicle but later backed down and announced that it would make changes in the next editions. The company also followed this up with action highlighting the importance of safety.

Answer the following question. Q1. Discuss the issues and challenges related to safety in products manufactured by a company. Q2. Debate the issues related to consumer behavior in emerging markets like India where consumers are ready to compromise safety for a lower price Q3. Analyze how Nissan coped with negative reports from NCAP. Q4. Explore ways in which Nissan can frame an effective operational strategy to address safety concerns